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The XL70E3 was an improvement on the XL64 IW rifle, re-chambered for 5.56 ammunition to meet the needs of NATO. Like the XL64, it was internally very similar to the AR-18 rifle made at Sterling. In fact, Enfield used Sterling-made AR-18s to create the first prototypes of the XL70E3, which triggered accusations that Enfield were copying Sterling. Nevertheless, the XL70E3 was more successful than the XL64, but reportedly functioned poorly in certain conditions, and so further improvements were made in the form of the SA80, the British service rifle.